subject: The Flaws Of Having A Consigner On Your Miami Beach Real Estate Property [print this page] Liability Liability
Once you agreed to become a consigner for the mortgage of a Miami Beach real estate property, you are legally bound with the buyer. One of the worst that could happen is the lender pursuing you if the buyer defaults on the monthly mortgage payment. This normally happens if you didnt make yourself aware of the exact terms of the loan. If the borrower decides to abandon the house, you, as the consigner, have the responsibility to make the necessary payments thereafter. This can potentially damage your good credit score especially if the house enters into foreclosure.
Loan responsibility
As a consigner, you should be aware that you now share the responsibility of paying off the loan with the borrower. Depending on your relationship with the buyer of the Miami Beach real estate, your credit rating and relationship with the buyer can be damaged if he or she is irresponsible.
Personal relationship
If the buyer is a friend or a family relative, your close friendship or ties will be potentially damaged. Disputes on payments and non-accordance to the loan terms can put irreparable harm to your relationship. When it comes to money, relationships with always be on the line. So before considering to become the consigner, even if youre just trying to help the borrower, know that youre putting your years of friendship or close family bond on the line.
Not always getting updates
It is possible that you live far from the Miami Beach real estate property, which the borrower purchased. This can keep you in the dark as to the present situation of the loan. If this is the case, it will be hard for you to know if the borrower is on arrears or facing dire financial straits. Remember that as a consigner, you have the task to always check in with the payments in order to avoid troubles in the future.
